Bluewater Health is working with Union Gas and Bluewater Power to conduct a feasibility study on a new cogeneration plant at the Norman St. site.
It would use a natural gas engine to produce electricity and heat which will hopefully decrease hydro costs and consumption.
Hospital spokesman Alex Sullo says the plant would save an estimated $400,000 per year, with utility partner incentives funding about half of the project.
"An interesting fact as well is that some of those systems could actually also be producing a certain amount of cooling," says Sullo.
"So, essentially it's burning a much cheaper fuel (being natural gas) to produce higher cost electricity."
Sullo says Bluewater Health's three new HVAC units have resulted in savings of $129,000 each per year, using "heat wheel" technology.
He says the hospital's reusable sharps container program diverted 15 tonnes of plastic waste from the landfill last year.
He says those initiatives, combined with new LED lighting, allow the hospital to put more money into front-line patient care.